Council looking to address $13M infrastructure deficit

A report presented to council shows the city’s core assets are facing an annual infrastructure deficit of $13 million – with an overall deficit of more than $30 million.

On Tuesday night administration laid out the city’s asset management plan, which looks at core infrastructure such as roads, bridges and culverts.

Budget chair Mark Bentz said the municipality is making progress as it tries to close the gap, but noted the province needs to do its share.

“We are increasing the funds into that file at five per cent per year and rolling retired debt into it as well. We are doing what we can to increase the annual spend on capital projects for maintenance and replacement purposes. Could we do more? Yes, but it would cost money,” Bentz said.

City treasurer Keri Greaves noted the $13 million figure was presented to council as part of phase 1 of the plan.

“The reality is we don’t know what the actual number is. It’s probably a fairly good representation, but until we actually complete the work, we won’t know for sure.

“The work is being undertaken by a committee of administrative individuals who spend countless hours documenting what assets we have, tracking that and trying to determine estimates for use of life. It’s a very complex process,” Greaves said.

City manager Norm Gale maintained there are positives to have debt when it comes to buildings, infrastructure and capital projects.

“The use of debt to finance those things enables us to spread the cost over years and generations. This way the actual users of those facilities that are benefiting are the ones that pay for it,” he said.

Phase 2 of the asset management plan is set to go until July and then phase 3, which will include developing a financial strategy to achieve proposed levels of service in July 2025, will start.

The public has a chance to weigh in during an informal question and answer session in the Embassy Suite at the Victoria Inn this afternoon.

Council will review the budget on Jan. 30, Feb. 1, Feb. 5 and Feb. 7.

The budget is scheduled to be ratified on Monday, Feb. 12. – tbnewswatch.com

article website here

…Budget chair Mark Bentz said the municipality is making progress as it tries to close the gap, but noted the province needs to do its share. …

Why?  Why does the city expect any other level of government to pony up cash ( cash that is borrowed) to pay for infrastructure that belongs to the City of Anywhere In Ontario?    Why?

What do I want from the Province of Ontario?  Health Care, Education , Transportation,  Social Services, Consumer Protection, Law and Order,  Energy,  Protect the Environment,  Standards Enforcement,   Food and Agriculture…..the basics.

The Province of Ontario has its own financial challenges right now. The province as well as the Federal Government are running deficits. Large deficits.  Money that will have to be paid back by taxpayers who have not been born yet.   They have no say in that.

I am not paying taxes to senior levels of government only to have those governments give back some of those taxes in the form of grants, minus their “cut” of course.  And then there are the processing fees commonly known as government bureaucracy.

Instead, I believe that the senior levels of government lower their taxes (yeah, that’s going to happen)  and instead allow municipal governments to collect taxes to fund local infrastructure.  Local governments then would have to justify those taxes and the way they are spent. By getting “free money” from the senior levels of government, it lets the local governments off the hook as far as justifying that spending.

Remember, there is only one taxpayer. The province, the federal government and the municipality all get their money from the same place….your wallet.  City Council members need to understand that.  The public needs to understand that.

Its time that the City of Thunder Bay breaks from its dependence on senior levels of government to fund infrastructure and capital projects.

There are too many organizations that depend on government cash.  I believe their sole purpose is job creation.  They create jobs for themselves and them milk the government cash cow dry for funding.  (here and here are two examples. There are many more ). By continuing to fund these organizations with taxpayer dollars, it only encourages more of them to pop up.   These organizations should be funded by the public directly through charitable donations.  That’s it.  No public support, no cash.